TSXV:MRS.H - Post by User
Post by
Hiddensecretson Sep 17, 2020 12:14am
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Post# 31572659
Two issues: Margins and Finance costs?
Two issues: Margins and Finance costs?My guess is 2% gross margins on these big contracts, once we take into account financing costs as they need to borrow to deliver the goods. .
That means $ 432,000,000 in orders * 2% = $ 8,640,000 in gross profit.
Expenses are $ 1.5 million per quarter or $ 6 million per year, so tiny profit, if any is left to shareholders.
Also big debt on the books that needs to be paid down, most likely profit will be used to pay down debt.
My personal opinion,